S10 Bonus Episode - The NDIS Funding Reset Is Here. Now What?

The NDIS funding reset is here, and for OTs the implications go well beyond understanding the percentage reductions. There are questions about who will be affected, what happens when funding is reduced and what evidence may now need to be captured.

The new Support Determination, High Support Needs safeguard and exclusions for certain supports have practical implications for OT assessment, reporting and service delivery. There is also the challenge of supporting participants and families through changes that may significantly affect their everyday supports.

What does the funding reset mean in practice?

From 1 October 2026, the funding reset applies to relevant new or reassessed plans, with a 50% reduction in accessible Social, Economic and Community Participation funding and a 10% reduction in Improved Daily Living.

This could mean substantially less funding available for community participation and reduced therapy budgets. The changes are relevant across both adult and paediatric practice, including participants accessing Allied Health and community supports.

The changes will be introduced progressively, with plan renewals also affected from 1 February 2027 and the reset intended to apply across participant plans by September 2027.

What happens when the reduction creates a support gap?

The High Support Needs safeguard provides a potential plan variation pathway where the funding reset creates a gap in a participant’s ability to safely receive 24-hour disability supports.

Eligibility requires NDIS-funded disability supports across 24 hours and the relevant annual funding threshold to be met. The previously referenced 1:3 support ratio is not a separate eligibility criterion.

The pathway does not simply reinstate the Social, Economic and Community Participation funding that has been reduced. Instead, a variation may provide additional Assistance with Daily Life or Home and Living funding to address the resulting gap in 24-hour supports.

A significant concern remains for participants who require support across 24 hours but do not currently receive NDIS-funded disability supports across the full 24-hour period. This may include participants whose family members provide substantial support during currently unfunded hours.

Which supports are protected from the 50% reset?

Not all Social, Economic and Community Participation supports are subject to the 50% reduction. Excluded support subgroups include specialised supported employment, eligible high intensity supports and intensive and complex behaviour supports.

For OTs, this makes accurately identifying and evidencing the type of support a participant requires particularly relevant. A participant may have needs consistent with high intensity supports while their existing plan has been built using standard support line items.

High intensity support needs may include areas such as epilepsy and seizure support, complex bowel care, dysphagia support, diabetes management, enteral feeding and tracheostomy care. Appropriate evidence of the support required, including relevant management plans, may need to accompany these recommendations.

Similarly, having a behaviour support plan does not automatically establish a need for intensive and complex behaviour supports. Functional evidence should clearly demonstrate the behaviours of concern, their impact on safety and wellbeing and the level of support required.

Working differently with reduced funding

For therapy, a 10% reduction does not necessarily mean simply reducing every service by 10%. Looking at the available funding across the full year may create more flexibility in how intervention is delivered.

This could include changing session frequency or length, using blocks of intervention, incorporating telehealth or coaching where appropriate or prioritising particular aspects of a participant’s goals. Any changes still need to reflect the participant’s assessed needs and the potential impact of reduced intervention.

There may also be efficiencies to find within OT practice. Streamlining assessment processes, reducing duplication in reports and improving templates may help make better use of available funding without compromising clinical reasoning or the evidence required.

When you can’t change the outcome

There is also a significant emotional impact for OTs navigating these reforms alongside participants and families. One client example involved achieving a positive outcome through the ART, only for the prospect of the new plan being affected by the funding reset to create another major challenge.

This raises the issue of moral injury, particularly when clinicians can see the potential consequences of a system decision but have limited ability to change the outcome.

Supervision, psychosocial safety and appropriate support for clinicians become increasingly relevant when OTs are having difficult conversations with participants and families while also managing their own response to changes outside their control.

Key takeaways

• The funding reset affects both community participation and therapy funding, with changes being introduced progressively

• The High Support Needs safeguard may provide a plan variation pathway where the reduction creates a gap in safe 24-hour disability supports

• Participants who need 24-hour support but do not receive NDIS-funded disability supports across the full 24 hours remain a significant concern

• Some eligible high intensity and intensive and complex behaviour supports are excluded from the 50% reduction

• OTs may need to strengthen how high intensity and complex support needs are identified and evidenced within Functional Capacity Assessments

• Reduced therapy funding may require different approaches to service delivery and greater efficiency within OT practice

• Supervision and psychosocial safety are increasingly relevant as OTs navigate the professional and emotional impact of these changes